THE IMPACT OF FOSSIL-FUEL SUBSIDY REFORM TO REGIONAL GROWTH IN INDONESIA
Indonesia as an oil producer country has implemented energy subsidy policy for long <br /> <br /> <br /> time. As the time passed, the resources are limited and the decline of oil production <br /> <br /> <br /> moreover since 2003 Indonesia became net oil im...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/23013 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Indonesia as an oil producer country has implemented energy subsidy policy for long <br />
<br />
<br />
time. As the time passed, the resources are limited and the decline of oil production <br />
<br />
<br />
moreover since 2003 Indonesia became net oil importer country. The government <br />
<br />
<br />
have done several fuel subsidy reforms as the high burden of subsidy in the state <br />
<br />
<br />
budget. <br />
<br />
<br />
The impact of fuel subsidy reform to the economic growth is researced in this final <br />
<br />
<br />
project by focusing in thirthy three provinces in Indonesia. The econometric approach <br />
<br />
<br />
is applied with panel regression to measure the impact using three independent <br />
<br />
<br />
variables, pricegap as subsidy indicator, number of school participation age 15-18 <br />
<br />
<br />
years old as education variable and number of constructions finished as infrastructure <br />
<br />
<br />
indicator. The dependent variable for economic growth is the growth of gross <br />
<br />
<br />
domestic regional bruto. <br />
<br />
<br />
The research conclude that the fossil fuel subsidy is positively impact the regional <br />
<br />
<br />
economic growth, the reduction of the amount of subsidy would decrease the regional <br />
<br />
<br />
economic growth. <br />
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